For more information about Vanguard funds or Vanguard ETFs, visit advisors.vanguard.com or call 800-997-2798 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.

Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

Investments in bond funds are subject to interest rate, credit, and inflation risk.

Diversification does not ensure a profit or protect against a loss.

Investments in stocks or bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk.

All investing is subject to risk, including possible loss of principal.

So comprehensive wealth management is, well, comprehensive, and likely requires a team of advisors to do well. This is fortunate, because the industry has been moving toward this team-oriented approach for years. A team provides the opportunity to add specialists with depth of expertise, a feature that may help with what Cerulli found to be the second- and third-biggest competitive concerns (peers with better sales skills and niche practices, respectively).

Teams allow for the diversification of not only skill sets but also personalities and demographics, offering the ability to provide a “best fit” advisor for any given client or prospect. For example:

Some clients may prefer to work with more analytic advisors; others may prefer extroverts.

Some clients may prefer working with an advisor with more experience; others—say millennials—may relate to someone younger.

Some clients may want a significant amount of personal attention and contact; others may prefer a lot of information, education, and perspectives, but want a digital—rather than a personal—relationship.

Think people, not portfolios

Comprehensive wealth management is likely to be a bigger part of financial services in the future. In our opinion, wealth management isn’t a practice model focused on asset management, but on relationship management. It requires you to focus on clients as people, not portfolios.

Are you prepared to deal with a variety of client personalities and preferences? If different preferences exist within a single household relationship—say, baby-boomer parents and their Gen X or millennial children and grandchildren—how can you afford not to?

Don Bennyhoff

He is a member of the group responsible for capital markets research and the asset allocations used in Vanguard’s fund-of-fund solutions, such as the Target Retirement Funds. The group is also responsible for maintaining and enhancing the investment methodology used for advice-based relationships with high-net-worth and institutional clients.

In addition, Mr. Bennyhoff has authored a number of research papers on topics of concern for institutional and ultra-high-net-worth audiences. He earned a bachelor’s degree from Furman University, has been in the financial services industry since 1991, and is a CFA charterholder.

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For more information about Vanguard funds or Vanguard ETFs, visit advisors.vanguard.com or call 800-997-2798 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.

Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

Investments in bond funds are subject to interest rate, credit, and inflation risk.

Diversification does not ensure a profit or protect against a loss.

Investments in stocks or bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk.

All investing is subject to risk, including possible loss of principal.

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The Vanguard Blog for Advisors™ is an interactive way for you to join in the discussion with some of our top thought leaders as they offer their perspectives on a wide range of topics that affect you as an investment professional.

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